Bharat Sanchar Nigam Limited is likely to register a lower profit of upto Rs 8,000 crore (Rs 80 billion) in 2005-06 compared to over Rs 10,000 crore (Rs 100 billion) in the previous year.
BSNL attributed the dip to lower levy (Access Deficit Charge) received from private operators and lower reimbursement of their license fee paid to government.
The ADC was lower by about Rs 2,000 crore (Rs 20 billion) and the reduction in the reimbursement of license fee was about Rs 1,600 crore (Rs 16 billion) in 05-06 compared to the previous fiscal, BSNL CMD AK Sinha said.
However, the gross income of the company has gone up by 9 per cent to Rs 39,500 crore (Rs 395 billion) from over Rs 36,000 crore (Rs 360 billion) in the previous fiscal, Sinha said while announcing the provisional figures for the year.
Sinha said they have urged the government to consider higher rate of ADC and full reimbursement of license fee. In 2005-06 the net effect of reduction in both was Rs 3,600 crore (Rs 36 billion). BSNL added whopping 82,27,000 new subscribers in all fixed, WLL and GSM mobile services registering a growth of 55.6 per cent in 2005-06.
Although there were disconnections in the fixed line ranging between 3000,000 to 3500,000 but combining the two fixed and WLL, the company registered net addition of 512,000 new subscribers during the year gone by, Sinha said.
The company has fixed an ambitious target of adding 10 million new subscribers in the current fiscal.
The total subscriber figure of BSNL (fixed, WLL and mobile) as on March 31, stands at 5.51 crore (55.1 million) of which GSM mobile connections are 1.71 crore (17.1 million) and rest are fixed and WLL. The company shall be investing Rs 17,000 crore (Rs 170 billion) in 2006-07 mainly on adding infrastructure in rural areas, new broadband connections and spreading optical fibre network across the country, he added.
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